PPB GROUP BERHAD Listed on the Main Market of Bursa Malaysia Securities Berhad, PPB Group Berhad was

incorporated in Malaysia in 1968 and is engaged in property investment and investment holding.

PPB Group's core businesses are grains trading, flour and animal feed milling as well as downstream activities including livestock farming; food processing; bakery and marketing and distribution of consumer products. FFM Group in which PPB has 80% equity interest, owns and operates a total of five (5) flour mills in the country and one (1) each in Vietnam, Thailand and Indonesia. The FFM Group supplies more than 40% of Malaysia's flour requirements.

PPB is also the single largest shareholder, owning 18.3% equity interest in one of Asia's largest integrated agribusiness groups, Wilmar International Limited (Wilmar) which operates in more than 20 countries across four continents and has over 300 processing plants. Wilmar has an extensive distribution network for its products which are sold to more than 50 countries globally.

Besides food manufacturing, PPB owns Golden Screen Cinemas SdnBhd which is the largest film exhibitor in Malaysia with 197 screens in 24 locations nationwide, capturing about 40% of domestic box office collections. PPB Group has grown into a major conglomerate with assets and market capitalisation totaling RM15.2 billion and RM20.4 billion respectively as at 31 December 2011.

PPB's strategic acquisitions and business ventures over the years have enabled it to successfully diversify its businesses to include in addition to the above, environmental engineering and waste management; contract manufacturing; chemicals manufacturing; property development and management; and packaging operation.

PPB Group currently has operations in China, Vietnam, Indonesia, Myanmar, Thailand and Singapore and employs more than 3,500 employees in its domestic and overseas operations.

96 Analysis In year 2011. the more capable the company is of paying its obligations.Liquidity Ratio 1.88 Analysis In year 2011. By comparison between the both years. The current ratio can give a sense of the efficiency of the PBB operating cycle or its ability to turn its product into cash.27 while the current ratio of PBB in year 2010 is 4. By comparison between the both years. .88. Current ratio Current ratio = Year 2011 (RM’000) 2010 (RM’000) =4. It is obviously that the current liabilities in year 2011 are much higher than in year 2010. Year 2011 has higher inventories than year 2010 which mean in year 2011 has fully utilize their asset to generate money. the acid test ratio of PBB is 3. 2. the current ratio in year 2010 is higher than the year 2011.96. the current ratio of PBB is 4.34 while the acid test ratio of PBB in year 2010 is 3. This means that PBB has higher ability to use its asset to pay its current liabilities in year 2010. Acid test ratio Acid test ratio = Year 2011 (RM’000) 2010 (RM’000) =3. The higher the current ratio. the acid test ratio in year 2010 is higher than the year 2011.

16times Analysis In year 2011. By comparison between the both years. Average collection period Average collection period = Year 2011 (RM’000) 55.18 times 2010 (RM’000) =0.47 days.3. it indicates that in year 2010. the average collection period of PBB is 55. the total asset turnover for year 2011 is higher than the year 2010. Hence. By comparison between the both years. it indicates that in year 2011. Therefore. the total asset turnover of PBB is 0.43days 2010 (RM’000) = 50.43 days while the average collection period of PBB in year 2010 is 50. . Therefore. Total asset turnover Total asset turnover = Year 2011 (RM’000) 0.16 times. the PBB has higher ability to collect its credits back as compare to year 2011 which take longer period. Efficiency ratio 1.47 days Analysis In year 2011.18 times while the total asset turnover of PBB in year 2010 is 0. it show that in year 2011 generated sales better than year 2010 in utilizing total assets of their company. the PBB is more effective in managing firm’s balance sheet as compare to year 2010. the average collection period for year 2010 is shorter than the year 2011.

Fixed asset turnover Fixed asset turnover = Year 2011 (RM’000) 0. By comparison between the both years. Hence. .19times Analysis In year 2011. 3. the inventory turnover for year 2010 is higher than the year 2011. Inventory turnover Inventory turnover = Year 2011 (RM’000) 4. it indicates that in year 2010.68 times Analysis In year 2011. the inventories of PBB are more liquid as compare to year 2010. it indicates that in year 2011.19 times.21 times 2010 (RM’000) = 0. the inventory turnover of PBB is 4. it show that in year 2011 generated sales better than year 2010 in utilizing fixed assets of their company.21 times while the fixed asset turnover of PBB in year 2010 is 0.87times 2010 (RM’000) = 5. the fixed asset turnover for year 2011 is higher than the year 2010.87 times while the inventory turnover of PBB in year 2010 is 5. it shows that in year 2010 clear the inventories faster than year 2011. the PBB is more effective in managing firm’s balance sheet as compare to year 2010. the fixed asset turnover of PBB is 0.68 times. Therefore. Therefore.2. Therefore. By comparison between the both years.

Therefore. the OIROI for year 2011 is lower than the year 2010. .12 Analysis In year 2011. the accounts receivable turnover for year 2011 is lower than the year 2010.23 times. the PBB has higher ability to collect its credits back as compare to year 2011 which means that the credit sales are much higher than the account receivable. it indicates that in year 2010. the PBB is more effective in management at generating operating profits on the firm’s assets as compare to year 2011.58 times while the accounts receivable turnover of PBB in year 2010 is 7. Therefore. the OIROI of PBB is 6. 5.23 times Analysis In year 2011. it indicates that in year 2010. the accounts receivable turnover of PBB is 6.58 times 2010 (RM’000) = 7. By comparison between the both years.4. By comparison between the both years.12%.95 2010 (RM’000) x 100=8. Accounts receivable turnover Accounts receivable turnover = Year 2011 (RM’000) 6.95% while the OIROI of PBB in year 2010 is 8. Operating Income Return on Investment (OIROI) OIROI = Year 2011 (RM’000) = 6.

The lower the debt ratio indicated that a company will the less a firm is financed by outside parties.98% while the operating profit margin of PBB in year 2010 is 49.17 2010 (RM’000) x 100 =3. Therefore. which is the optimal situation for the company. Debt ratio Debt ratio = Year 2011 (RM’000) x 100 =4.76%. A high operating profit margin means that the year 2010 has better cost control and/or that sales are increasing faster than costs. it indicates that in year 2011.17% while the debt ratio of PBB in year 2010 is 3. Operating profit margin Operating profit margin = Year 2011 (RM’000) =38.98 2010 (RM’000) x100=49. it indicates that in year 2010. By comparison between the both years. the debt ratio of PBB is 4. the operating profit margin of PBB is 38. Leverage ratio 1.26%.26 Analysis In year 2011.6. In general.76 Analysis In year 2011. a higher debt ratio indicated that a company will face a greater hazard in its ability to settle its debts obligation. the debt ratio for year 2011 is higher than the year 2010. the operating profit margin for year 2011 is lower than the year 2010. the PBB is using more debt to finance it firm’s assets as compare to year 2010. Therefore. . By comparison between the both years. the PBB is more effective in managing firm’s income statement as compare to year 2011.

76 times Analysis In year 2011. 3.2. the times interest earned for year 2010 is higher than the year 2011. Return on equity (ROE) ROE = Year 2011 (RM’000) = 6. By comparison between the both years. It means that in year 2010 is more capable to repay fixed interest from its net operating profit compare to year 2011 even though the amount of interest expense for year 2010 is high.92 times 2010 (RM’000) =237. Times interest earned Times interest earned = Year 2011 (RM’000) = 181. the higher the value of times interest earned ratio means that there is a greater ability of company to repay its interest and debt which also means that the more likely it is that the corporation will be able to meet its interest payment.16% . In general.76 times.92 times while the times interest earned of PBB in year 2010 is 237.95% 2010 (RM’000) x 100 = 14. the times interest earned of PBB is 181.

Therefore. the PBB has higher accounting rate of return on the stockholders investment as compare to year 2011.The DuPont model ROE = net profit margin total assets turnover / (1.16%. the return on equity for year 2011 is lower than the year 2010.16% Analysis In year 2011. . By comparison between the both years.95% =14. it indicates that in year 2010.95% while the return on equity of PBB in year 2010 is 14.Debt ratio) =( ) / (1- ) Year 2011 (RM’000) 2010 (RM’000) =6. the return on equity of PBB is 6.

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